$(1)$

Consider the time line shown here. Is the stream of cash flows an annuity?

Details

A timeline shows periods of $0$ to $3$ years with an increment of $0\mathrm{.}5$ years. The cash flows for periods $1,2,$ and $3$ are $100$ dollars each.

$(2)$

What is the value at the end of Year $3$ of the previous cash flow stream if the quoted interest rate is $10\%,$ compounded semiannually?

$(3)$

What is the PV of the same stream?

$(4)$

An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? $($Hint: Think of annual compounding, when

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$.)$ What would be wrong with your answers to parts $(1)$ and $(2)$ if you used the nominal rate of $10\%$ rather than the periodic rate,

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